Gold, Silver Prices Pressured By Bounce In U.S. Dollar
(Kitco News) - Gold and silver markets are moderately lower in early U.S. trading Monday. A firmer U.S. dollar index has prompted some more profit-taking from the shorter-term futures traders after both markets last week hit 4.5-month highs. February Comex gold futures were last down $10.60 an ounce at $1,341.50. March Comex silver was last down $0.176 at $17.265 an ounce.
There were no significant, markets-moving news events during the weekend to impact the marketplace. World stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins.
A feature in the marketplace recently are rising world bond market yields. That means rising interest rates and rising inflationary pressures. U.S. Treasury bonds and notes dropped to new contract lows in prices today.
The key “outside markets” are in a bearish posture for the precious metals to start the trading week. The U.S. dollar index is higher on a corrective rebound after hitting a 3.5-year low last week. Meantime, Nymex crude oil prices are modestly lower and trading above $65.00 a barrel, on a corrective pullback after last week’s more-than-three-year high. A rising U.S. oil rig count, reported Friday, is also bearish for oil.
U.S. economic data due for release Monday includes personal income and outlays, the Texas manufacturing outlook survey.
Technically, February gold futures bulls still have the firm overall near-term technical advantage. Prices are still in a six-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at the September high of $1,365.80. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,320.00. First support is seen at today’s low of $1,339.50 and then at $1,335.00. First resistance is seen at today’s high of $1,351.40 and then at $1,356.00. Wyckoff’s Market Rating: 6.5
March silver bulls have the overall near-term technical advantage. A choppy, six-week-old price uptrend is in place on the daily bar chart. The next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $16.735. First resistance is seen at today’s high of $17.47 and then at $17.59. Next support is today’s low of $17.24 and then at $17.00. Wyckoff's Market Rating: 6.0.